Data-driven decision making: The power of unified supply chain management software

 Unlock the unified power of optimized operations through data-driven supply chain.

Supply chains have become increasingly complicated due to the rapid development of technology. The more data you can access and analyze, the better positioned you are to make informed decisions. Here is where decision-making through a data-driven supply chain helps you approach supply chain management differently. 

According to McKinsey's research, companies that use data-driven supply chain management software can decrease logistics costs by up to 15%, lower inventory levels by 35%, and enhance service levels by 65%. 

These findings indicate the benefits of the application of data as a potent tool to simplify your supply chain management. However, mere data collection does not help businesses realize these advantages. Unified integrated logistics software is required to integrate data from multiple sources and enable businesses to make informed decisions.

Data fragmentation in supply chains—A major challenge

Data fragmentation is likely to be an issue if your company uses point solutions for diverse functions such as supplier coordination, logistics tracking, customer management, and inventory management. Disconnected point solutions decrease cross-functional visibility, resulting in overstocking or stockout situations. Multiple-point solutions cause inefficient data management, which leads to complex operations. 

Analyzing the complete picture becomes difficult when data is scattered over several platforms. The capacity to make educated decisions may suffer from compartmentalized information. 

Common causes and associated challenges of fragmented data include:

• Siloed use of generic procurement tools: Generic procurement tools provide fragmented data that does not meet the specific needs of freight procurement. It leads to poor freight operation optimization, hinders strategic freight sourcing, and adversely affects the bottom line.

• Using 3PLs for transportation planning and management: It's difficult to control your logistics costs and visibility as 3PLs share fragmented data and information. This prevents you from making informed decisions.

• Outsourcing freight audit and payment (FAP): Outsourcing FAP does not provide real-time visibility into your freight spend. You may find it challenging to make an informed decision with this fragmented data. It also increases the risk of data breaches, which can lead to financial losses and reputational damage. 

On average, supply chain managers spend 60% of their time physically compiling information from several systems. This not only results in ineffective commercial outcomes but also increases the possibility of errors.

Advantages of unified data in supply chain management

The global supply chain market is estimated to reach USD 45.2 billion by 2027. Transition to SCM technology solutions is key to leveraging this growth. 

Integration of supply chain management software allows businesses to combine their supply chain data into one simplified solution. 

Here's how businesses stand to gain from this cohesive approach:

• Improved data quality: Improvement in data quality guarantees accuracy and uniformity in operations. Using Pando's rate manager, you can improve data quality and link between freight sourcing and financials. Rate management demonstrates strategic competence that enables you to maximize efficiency, maintain compliance with regulations, and encourage operational flexibility.
• Enhanced visibility: According to research, visibility plays a significant role in the supply chain. Unified data and SCM technology solutions provide you with 360-degree visibility of freight spend, thereby facilitating quick identification of trends and inefficiencies.
• Accurate forecasting: Integrated data, powered by AI-driven supply chain analytics features of advanced unified platforms such as Pando.ai, enables predictive analytics, which improves accurate forecasting for freight accruals, demand forecasting, and inventory efficiency.
• Cost reduction: Advanced unified systems help reduce costs by leveraging historical data on carrier performance. This can minimize the need for several platforms, thus reducing operating and integrated logistics software costs.
• Enhanced collaboration: A single data source guarantees that every department uses the same data, thus promoting transparency and cooperation. Additionally, it improves the collaboration between suppliers, manufacturers, distributors, retailers, and other partners.
• Scalability: SCM platform is designed to accommodate rapid scalability. Businesses can customize and expand the platform seamlessly based on growth in their logistics needs across other verticals of movement, geographical locations, products, and business units.

Data-driven supply chain success stories

Several leading companies have adopted unified supply chain management software to improve their operations and make more informed decisions. These include:

Unilever: Unilever enhanced its supply chain visibility by implementing an integrated platform for supply chain analytics. This allowed Unilever to maximize shipping paths and lower inventory levels significantly. 

Caterpillar: The heavy equipment manufacturer uses a single data platform to track material shipments and check real-time inventory levels. This has substantially enhanced the company's capacity for effective decision-making. (Ref- Harvard Study) 

Amazon: This e-commerce uses cutting-edge data-driven supply chain technologies such as AI and ML to maximize its supply chain efficiency. Its platform forecasts demand with remarkable accuracy, thus enabling it to reduce excess inventory and stockouts. 

These case studies highlight how data-driven supply chain management systems can significantly enhance performance, reduce costs, and improve efficiency.

Enhancing supply chain decisions with pando.ai's unified platform

Managing a supply chain places constant pressure on businesses to make decisions that meet consumer demand, cut costs, enhance performance, and drive profitability. Without appropriate tools, businesses run the risk of depending upon scattered data, which would result in ineffective decisions. 

Investing in unified supply chain management tools such as Pando.ai can help you fully utilize data. Whether it's improving visibility, allowing predictive analytics, or combining artificial intelligence capabilities, a single platform lets you make quicker, wiser decisions that provide actual corporate value. This method of data-driven decision-making not only saves time and lowers expenses, but also helps you stay ahead of the competition. 

Contact Pando.ai to make your supply chain more efficient and empower your business to make data-driven decisions through a unified SCM platform. 

Book a demo today.